Stock analysts at HSBC Securities cut their rating on shares of T-Mobile US, Inc. (NASDAQ:TMUS) from Buy to a new rating of Hold in their opinion released on November 14.
For the period that ended November 15, 2019, the short interest in T-Mobile US, Inc. (NASDAQ:TMUS) stock is on the down. The 19.09% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 1.9 suggests disposing off these shares. Between October 31 and November 15, the total count of shorted shares totalled 9.57 million. That number was 2,257,985 less shares compared with the total of 11.83 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for TMUS at the November 15th settlement surged to 3,154,134, versus 2,821,952 at the October 31st report. That led days to cover to move at 3.033994, a 27.61% decrease compared to the 4.191286 days to cover recorded at the prior short interest data release.
Let’s take a glimpse at some insider activity at T-Mobile US, Inc. (NASDAQ:TMUS) and observe the pattern. The earliest insider trade happened on 06/18/2019. SIEVERT G MICHAEL parted with a total of 9.32 thousand shares of the firm at average share price of $75.5. The total amount for the sale was set at $703.96 thousand. On completing this exchange, the President & COO account balance was 529.32 thousand shares. The stock grew 2.83 percent from that insider sale. On 03/19/2019, SIEVERT G MICHAEL, President & COO, did a sale of 9.52 thousand shares at a price of $73.24 per share. This got rid of 697.1 thousand shares from the insider’s fortune and the stock experienced a 6.01 percent rally in price since the news became public. This exchange saw 538.64 thousand shares get out from the President & COO account. On 02/15/2019, Pres. MetroPCS Keys Thomas Christopher recorded a sale transaction valued at $3.04 million. The sale at $70.71 a share has eliminated 43 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 9.8 percent increase since the transaction reporting date. The company insider is left with 278.18 thousand shares remaining in the account. McAuliffe Elizabeth A., who works as EVP, Human Resources at the company, performed a sale of 2.25 thousand shares in a transaction worth $156.42 thousand. The disposal recorded on 01/31/2019 was priced at $69.52 per share. The stock price soared 11.68 percent since the transaction. McAuliffe Elizabeth A. currently holds a stake of 67.22 thousand in TMUS stock which is worth $5.22 million after the insider selling.
The stock is lingering around the initial support level of $76.72. After this, the following support is at the zone of $75.8. Up until the time the TMUS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 44.03 on the daily chart, and this may be a cause for concern. In case the price goes below $75.8 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $78.7 level may cause a pull-back move approaching $79.76 mark.
On December 02, 2019, T-Mobile US, Inc. (NASDAQ:TMUS) shares lost -1.16% or -0.91 points to close at $77.64 with a heavy trading volume of 2.881 million shares. It opened the trading session at $78.58, the shares rose to $78.84 and dropped to $76.86, the range by which the price of stock traded the whole day. The company now has a market cap of $66.8 billion and currently has 860.26 million outstanding shares. T-Mobile US, Inc. (TMUS) stock has plunged -6.07 percent of market value in 21 trading days.
TMUS stock’s trailing 3-year beta is 0.39, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.9 share in the trailing 52 weeks. The stock’s value surged 22.06 percent year to date (YTD) compared to a rise of 13.05 percent in 52 week’s period. The firm’s shares are still trading -8.89 percent below its 1-year high of $85.22 and 29.49 percent up from 52-week low of $59.96. The average consensus ranking on the company is 1.9, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.
T-Mobile US, Inc. (TMUS) shares are trading at a P/E ratio of 20 times earnings posted in the trailing 12 months. The industry TMUS deals with has an average P/E of 24.8. Its P/B ratio is standing at 2.4X compared to the 1.6 industry average. It is additionally sporting a 1.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.3. T-Mobile US, Inc. has a 58.5% gross profit margin, with its operating margin around 12.6%. Alongside this, the company’s net profit margin currently stands at 7.5%.
Past records have indicated that shares in T-Mobile US, Inc. rose on 18 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.